The crypto market has recovered a bit as follows: Brutal crash last week Scraped over 30% of value from major coins Bitcoin When EthereumHas fallen to a level not seen since 2020.
Bitcoin has risen by more than 10% in the last seven days, trading at $ 21,013 at the time of this writing, and Ethereum has pioneered more territory, jumping more than 19% to $ 1,189.
Polygon week It was even better: Supported by 6 weeks of whale accumulation, it rose almost 59% to above $ .57. this is, Santiment-and Partnership announced this week In the on-chain carbon market KlimaDAO..
Cryptocurrencies that rose at least 40% in seven days were Uniswap up 45% to $ 5.33 and Shiba Inu up 43% to $ 0.00001122. in the meantime, Avalanche rose nearly 33% to $ 20.10 and Solana rose nearly 33% to $ 40.05.
In fact, all of the top 30 cryptocurrencies have recovered at double-digit rates by the weekend, with the exception of Cardano up 4% to $ 0.4845 and TRON up 8% to $ 0.06445.
Bitcoin Cash actually fell 5.4% in a week to $ 113.7 at the time of this writing. TRON’s stablecoin USDD is now 2 weeks Trading under that peg.. It’s currently $ 0.9768.
“Fragmentation”
It was a relatively quiet Newsweek and probably helped the crypto market rise.
On Tuesday, the Bank for International Settlements (BIS), a global organization of 63 major central banks, Annual Economic Report 2022.. According to reports, cryptography has two main flaws. The need for “nominal anchors” and “fragmentation”.
What is a “nominal anchor”? StablecoinFixes value to fiat currencies such as the US dollar (varies in degree of success). The existence of Stablecoin “shows a broad need in the crypto sector to piggyback on the credibility provided by central bank-issued account units,” BIS said.
The report claims that cryptocurrencies have not yet challenged central bank hegemony in providing economic account units. “The fact that Stablecoin has to import the credibility of central bank money greatly reveals the structural shortcomings of cryptography. Stablecoin is more unstable than the issuer claims. Often, it indicates that it is an incomplete alternative to a healthy sovereign currency at best. “
The report also points to the abundance of various cryptocurrencies competing for hegemony as the “fragmentation” of the sector, “probably the biggest flaw in cryptocurrencies as the basis of the monetary system.”
The BIS report details the usefulness of blockchain technology for central bank digital currencies, or CBDCs (stablecoins issued by countries that are basically fixed to the domestic currency). again, Smart contract Technology (self-executed financial contracts on the blockchain) is one of many advantages that “enable transactions between financial intermediaries that go beyond the traditional medium of central bank reserves.”
The central banks of the United States and the EU are Mayor Honmachi, Jerome Powell When Christine LagardeThis week, we discussed cryptocurrency regulations individually, citing the speed at which blockchains are growing and possible economic risks, both of which said cryptocurrencies pose no immediate threat.
On Wednesday, US House of Representatives Jim Heims (D-CT) argued that it would help protect the dollar’s role as the world’s leading reserve currency, suggesting an overview of how the country would implement the CBDC. Was announced.
“The longer we wait for the US government to embrace this innovation, the more we will lag behind both the foreign government and the private sector,” Himes said. Said in a statement.. “It’s time for Congress to consider and move forward with a bill to approve the US CBDC.”
The next day, Powell House Committee on Financial Services The parliament will eventually receive Guidance from the Fed How to implement the CBDC.
“We do a lot of work,” he said, adding that once the Fed has drafted its policy recommendations, it’s up to Congress to draft the appropriate bill.
Finally, data from Arcane Research revealed that it is listed. Bitcoin Sold by miners such as Marathon Digital and Riot Blockchain More Bitcoins than they mined Last month — a big change from the first four months of the year when miners sold 30% of their income.
Arcane Research Bitcoin Mining Analyst Jalan Merelud wrote: Report: “If they are forced to liquidate a significant portion of these holdings, it could contribute to further lowering the price of Bitcoin.”
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